Ohio | 001-32545 | 31-0746639 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
810 DSW Drive, Columbus, Ohio | 43219 | |
(Address of Principal Executive Offices) | (Zip Code) |
(Former name or former address if changed since last report.) |
Exhibit Number | Description | ||
99.1 | Press Release dated November 26, 2013 |
• | Third quarter Reported sales increase 6.8% to $633 million; comparable sales decrease 0.7% |
• | First nine months Reported sales increase 8.0% to $1.80 billion; comparable sales increase 0.2% |
• | Third quarter Reported EPS rises to $0.60 per share on a post-split basis, including net income of $0.01 per share from our luxury test |
• | Third quarter Adjusted EPS rises to $0.58 per share on a post-split split basis ($1.17 on a pre-stock split basis), an increase of 14% over last year |
• | Full year Adjusted EPS guidance of $1.80 to $1.90 per share on a post-split basis, assuming flat same store sales growth |
• | Board of Directors approve a quarterly dividend of $0.125 per share |
• | Reported sales increased 6.8% to $633 million compared to last year's third quarter sales of $593 million. |
• | For the thirteen week period ended November 2, 2013, comparable sales decreased by 0.7%. This follows an increase of 6.3% during the thirteen week period ended October 27, 2012. |
• | Reported net income was $55.0 million, or $0.60 per diluted share on 92.1 million weighted average shares outstanding, which included net after-tax income of $1.4 million, or $0.01 per share, from our luxury test. This compares to Reported net income in the third quarter of 2012 of $50.1 million, or $0.55 per diluted share, which included a $3.6 million award, or $0.04 per share, resulting from the 2005 credit card litigation, as well as $0.2 million in legacy charges from RVI. |
• | Net income, adjusted for the results of our luxury test and legacy charges from RVI, was $53.6 million, or $0.58 per diluted share on 92.1 million weighted average shares outstanding. This compares to Adjusted net |
• | Reported sales increased 8.0% to $1.8 billion compared to last year's sales of $1.7 billion. |
• | For the thirty-nine week period ended November 2, 2013, comparable sales increased by 0.2%. This follows an increase of 6.1% during the thirty-nine week period ended October 27, 2012. |
• | Reported net income was $123 million, or $1.34 per diluted share, on 91.8 million weighted average shares outstanding, which included a net after-tax loss of $11.5 million, or $0.13 per share, from our luxury test, and a net after-tax charge of $9.4 million, or $0.10 per share, from the termination of the pension plan assumed in conjunction with the RVI merger. This compares to Reported net income in the same period last year of $119.3 million, which included $5.2 million in after-tax non-cash charges related to RVI and a $3.6 million after-tax award from credit card litigation. Reported EPS for the thirty-nine week period ended October 27, 2012 was $1.32 per share. |
• | Net income, adjusted for the net loss from our luxury test and legacy charges from RVI, was $144.1 million, or $1.57 per diluted share, on 91.8 million weighted average shares outstanding. This compares to Adjusted net income for the same period last year of $120.8 million, or $1.33 per diluted share, on 90.8 million weighted average shares outstanding. |
• | Cash, short term and long term investments totaled $522 million compared to $430 million in the third quarter last year. |
• | Inventories were flat at $424 million compared to $422 million during the third quarter last year, in line with expectations. On a cost per square foot basis, DSW segment inventories decreased by 2.2% at the end of quarter. |
Net sales by reportable segment | |||||||||||||||||||||
Thirteen weeks ended | Thirty-nine weeks ended | ||||||||||||||||||||
November 2, 2013 | October 27, 2012 | % change | November 2, 2013 | October 27, 2012 | % change | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
DSW | $ | 597,274 | $ | 559,312 | 6.8 | % | $ | 1,691,119 | $ | 1,562,707 | 8.2 | % | |||||||||
Affiliated Business Group | 35,702 | 33,422 | 6.8 | % | 105,282 | 100,817 | 4.4 | % | |||||||||||||
Total DSW Inc. | $ | 632,976 | $ | 592,734 | 6.8 | % | $ | 1,796,401 | $ | 1,663,524 | 8.0 | % | |||||||||
Less: Luxury sales | 8,341 | — | 17,418 | — | |||||||||||||||||
Total Adjusted DSW Inc. sales | $ | 624,635 | $ | 592,734 | $ | 1,778,983 | $ | 1,663,524 |
Comparable sales change by reportable segment (excludes luxury) | |||||||
Thirteen weeks ended | Thirty-nine weeks ended | ||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | ||||
DSW | (1.0)% | 6.6% | 0.2% | 6.3% | |||
Affiliated Business Group | 3.6% | 1.8% | 1.8% | 2.5% | |||
Total DSW Inc. | (0.7)% | 6.3% | 0.2% | 6.1% |
As of | As of | ||||||
November 2, 2013 | February 2, 2013 | ||||||
Assets | |||||||
Cash and equivalents | $ | 84,429 | $ | 81,097 | |||
Short-term investments | 195,248 | 232,081 | |||||
Restricted cash | 7,700 | — | |||||
Accounts receivable, net | 23,853 | 26,784 | |||||
Inventories | 424,066 | 393,794 | |||||
Prepaid expenses and other current assets | 35,866 | 20,637 | |||||
Deferred income taxes | 24,343 | 67,397 | |||||
Total current assets | 795,505 | 821,790 | |||||
Property and equipment, net | 316,542 | 300,313 | |||||
Long-term investments | 234,748 | 96,712 | |||||
Goodwill | 25,899 | 25,899 | |||||
Deferred income taxes | 10,562 | 9,443 | |||||
Other assets | 8,518 | 7,946 | |||||
Total assets | $ | 1,391,774 | $ | 1,262,103 | |||
Liabilities and shareholders' equity | |||||||
Accounts payable | $ | 147,100 | $ | 152,112 | |||
Accrued expenses | 130,612 | 123,199 | |||||
Total current liabilities | 277,712 | 275,311 | |||||
Non-current liabilities | 132,844 | 128,213 | |||||
Total shareholders' equity | 981,218 | 858,579 | |||||
Total liabilities and shareholders' equity | $ | 1,391,774 | $ | 1,262,103 |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
November 2, 2013 | October 27, 2012 | November 2, 2013 | October 27, 2012 | |||||||||||||
Net sales | $ | 632,976 | $ | 592,734 | $ | 1,796,401 | $ | 1,663,524 | ||||||||
Cost of sales | (420,106 | ) | (392,563 | ) | (1,217,092 | ) | (1,110,518 | ) | ||||||||
Gross profit | 212,870 | 200,171 | 579,309 | 553,006 | ||||||||||||
Operating expenses | (124,614 | ) | (121,734 | ) | (382,786 | ) | (355,775 | ) | ||||||||
Change in fair value of derivative instruments | — | — | — | (6,121 | ) | |||||||||||
Operating profit | 88,256 | 78,437 | 196,523 | 191,110 | ||||||||||||
Interest income, net | 1,036 | 2,575 | 1,857 | 3,538 | ||||||||||||
Income from continuing operations before income taxes | 89,292 | 81,012 | 198,380 | 194,648 | ||||||||||||
Income tax provision | (34,331 | ) | (30,897 | ) | (75,184 | ) | (76,608 | ) | ||||||||
Income from continuing operations | 54,961 | 50,115 | 123,196 | 118,040 | ||||||||||||
Total income from discontinued operations, net of tax | — | — | — | 1,253 | ||||||||||||
Net income | $ | 54,961 | $ | 50,115 | $ | 123,196 | $ | 119,293 | ||||||||
Diluted shares used in per share calculations: | 92,090 | 91,046 | 91,813 | 90,346 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.60 | $ | 0.55 | $ | 1.34 | $ | 1.31 | ||||||||
Diluted earnings per share from discontinued operations | $ | — | $ | — | $ | — | $ | 0.01 | ||||||||
Diluted earnings per share | $ | 0.60 | $ | 0.55 | $ | 1.34 | $ | 1.32 |
Thirteen weeks ended November 2, 2013 | |||||||||||||||||||||||
Net sales | Cost of Sales | Gross profit | Operating expenses | Net income | Diluted earnings per share | ||||||||||||||||||
Reported Measure | $ | 632,976 | $ | (420,106 | ) | $ | 212,870 | $ | (124,614 | ) | $ | 54,961 | $ | 0.60 | |||||||||
Less: luxury performance | |||||||||||||||||||||||
Net sales | 8,341 | ||||||||||||||||||||||
Cost of sales | (5,589 | ) | |||||||||||||||||||||
Gross profit (loss), including valuation reserves on remaining inventory & operating expenses | 2,752 | (535 | ) | 1,366 | 0.01 | ||||||||||||||||||
Less: Other RVI related income (expenses) | 46 | (48 | ) | — | |||||||||||||||||||
Adjusted Measure | $ | 624,635 | $ | (414,517 | ) | $ | 210,118 | $ | (124,125 | ) | $ | 53,643 | $ | 0.58 | |||||||||
Thirteen weeks ended October 27, 2012 | ||||||||||
Net income | Diluted earnings per share | |||||||||
Reported Measure | $ | 50,115 | $ | 0.55 | ||||||
RVI related expenses: | ||||||||||
RVI operating expenses, net of tax | 174 | (1) | 0.00 | (1 | ) | |||||
Adjustments related to award of damages: | ||||||||||
Operating expenses, net of tax | (2,486 | ) | (2) | (0.03 | ) | (2) | ||||
Interest income, net of tax | (1,156 | ) | (2) | (0.01 | ) | (2) | ||||
Adjusted Measure | $ | 46,647 | $ | 0.51 |
Thirty-nine weeks ended November 2, 2013 | |||||||||||||||||||||||
Net sales | Cost of Sales | Gross profit | Operating expenses | Net income | Diluted earnings per share | ||||||||||||||||||
Reported Measure | $ | 1,796,401 | $ | (1,217,092 | ) | $ | 579,309 | $ | (382,786 | ) | $ | 123,196 | $ | 1.34 | |||||||||
Less: luxury performance | |||||||||||||||||||||||
Net sales | 17,418 | — | — | — | — | ||||||||||||||||||
Cost of Sales | — | (33,084 | ) | — | — | — | |||||||||||||||||
Gross profit (loss), including valuation reserves on remaining inventory and operating expenses | — | — | (15,666 | ) | (2,977 | ) | (11,521 | ) | (0.13 | ) | |||||||||||||
Less: RVI pension and other RVI related income (expenses) | — | — | — | (14,695 | ) | (9,355 | ) | (0.10 | ) | ||||||||||||||
Adjusted Measure | $ | 1,778,983 | $ | (1,184,008 | ) | $ | 594,975 | $ | (365,114 | ) | $ | 144,072 | $ | 1.57 |
Thirty-nine weeks ended October 27, 2012 | |||||||||||||||
Net income | Diluted earnings per share | Diluted shares used in per share calculations | |||||||||||||
Reported Measure | $ | 119,293 | $ | 1.32 | 90,346 | ||||||||||
RVI related expenses: | |||||||||||||||
Change in fair value of derivative instruments | 6,121 | (1 | ) | 0.07 | (1 | ) | |||||||||
RVI operating expenses, net of tax | 307 | (2 | ) | — | (2 | ) | |||||||||
Total income from discontinued operations, net of tax | (1,253 | ) | (3 | ) | (0.01 | ) | (3 | ) | |||||||
Adjustments related to award of damages: | |||||||||||||||
Operating expenses, net of tax | (2,486 | ) | (4 | ) | (0.03 | ) | (4 | ) | |||||||
Interest income, net of tax | (1,156 | ) | (4 | ) | (0.01 | ) | (4 | ) | |||||||
Share adjustment | (0.01 | ) | (5 | ) | 444 | (5 | ) | ||||||||
Adjusted Measure | $ | 120,826 | $ | 1.33 | 90,790 |